By Michael Aron
Chief Political Correspondent
When Gov. Chris Christie walked out of his office with Senate President Steve Sweeney, the surprise was that Atlantic City Mayor Don Guardian was with them.
Last week, Guardian was railing against a new Sweeney initiative to have the state take over the city’s finances.
Guardian’s preferred solution was to declare bankruptcy and restructure city debt.
In fact, he had called an emergency hearing of the city council tonight to do just that.
But cooler heads apparently prevailed.
“So last Thursday I called the mayor to get to a solution and not have strife between the two of us,” Christie said.
The deal is to give the state Local Finance Board expanded powers over the city to restructure debt, to amend or terminate all labor contracts including those collectively bargained, to dissolve or transfer all city boards and commissions, to consolidate or share services with Atlantic County and to privatize municipal assets like the water utility.
Sweeney, who has been leading this charge for two weeks, was asked if this is indeed the T word, for takeover
“I don’t think it’s a takeover, an intervention, a partnership. We have to fix this government. It’s not AC’s fault it’s lost two-thirds of its revenue all at once, but they’re spending $3 for every $1 they’re taking in,” Sweeney said.
Mayor Guardian was asked if his change of heart was just a capitulation to the stronger force of the state.
“We looked at all of the options — do nothing, takeover, bankruptcy, partnership. We like being an ATM for the state. We want to continue to do that,” he said.
Christie said this solution goes farther than the payment in lieu of taxes bill he vetoed last week. This plan incorporates the PILOT, he said, but goes beyond it.
The expanded state powers would last five years, not the 15 in Sweeney’s original announcement.
Sweeney said he hopes that entices Assembly Speaker Vincent Prieto to get on board.
Prieto told NJTV News today he’s still looking at the issue.
Atlantic City’s structural deficit is over $100 million, Christie said. And the city is dickering with the Borgata over a $160 million tax bill.
Christie said after five years of a state run tourism zone and one year of an emergency manager, it’s time to step up state involvement and the media can call it what they like.
“The bottom line now is the only thing holding AC back is the cost of its government,” Christie said.
There’s an old adage — it’s better to be at the table than on the menu. Atlantic City Mayor Don Guardian apparently arrived at the same conclusion regarding a state takeover.
Atlantic City Councilman Kaleem Shabazz responds to Christie’s announcement: